Juniko Kobayashi: Japan's nominal neutral interest rate may be higher than 1%

According to Juniko Koizumi, a member of the review committee of the Bank of Japan, Japan's nominal neutral interest rate may be higher than 1%. According to employee estimates, the actual neutral interest rate is between -0.9% and+0.5%. Assuming inflation approaches the 2% target, the nominal neutral interest rate range is between 1.1% and 2.5%. The current short-term policy interest rate of the Bank of Japan is 0.75%.